QVC Group Inc.'s Q1 2025: Contradictions in Customer Trends, Tariffs, and HSN Strategy

Customer count and cord-cutting impact, tariff mitigation and supply chain diversification, customer sentiment and acquisition, liquidity and financial options, HSN performance and strategy are the key contradictions discussed in QVC Group Inc.'s latest 2025Q1 earnings call.



Revenue Decline and Macroeconomic Challenges:
- QVC Group reported a 10% decline in total revenue for Q1 2025 compared to the same period last year.
- The decline was attributed to macroeconomic challenges such asDeclining linear TV viewership, weakening consumer sentiment, and geopolitical uncertainty, particularly exacerbated by escalating tariff concerns.

Tariff Impact and Sourcing Strategy:
- Tariffs on goods sourced from China, which historically made up over 55% of QVC Group's product COGS, are adding uncertainty to the business with potentially adverse impacts on consumer demand.
- The company is actively implementing a strategy to reduce its import exposure from China by diversifying its sourcing, targeting no single country to account for more than one-third of its sourced goods by the end of the year.

Customer Count and Linear TV Viewership Trends:
- QVC Group experienced a 10% decline in customer count, driven by a 9% decrease in existing customers, a 17% decrease in new customers, and a 13% decrease in reactivated customers.
- The decline in customer count is largely due to a 13% decrease in linear TV minutes watched, reflecting a continued trend of cord-cutting and shifting consumer behavior towards streaming and social platforms.

Cost Management and Reorganization Efforts:
- The company pursued an additional $100 million in OIBDA opportunity by examining all areas of spending across the business, which began in late 2024 and is expected to continue through 2026.
- This strategy involves cost-cutting measures such as closing fulfillment centers, reducing labor expenses, and moving technology support to managed services contracts, aimed at improving operating efficiency amid a challenging macroeconomic environment.